Kentucky Veteran Benefits

All military pay received for service in the U.S. Armed Forces is exempt from Kentucky income tax.

The military retired pay of Service members who retired before January 1, 1998, is completely exempt From Kentucky income taxes. Service members who retired from the U.S. Armed Forces after December 31, 1997, may exclude up to $31,110 of their military retired pay from Kentucky income taxes.

Military disability retirement pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:

DIC is a tax-free monetary benefit paid to eligible survivors of military Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.

Kentucky allows a pension income exclusion of up to $31,110 for survivor benefit annuities.

Kentucky homeowners who are least 65 years old or who are totally disabled are eligible for a homestead exemption from Kentucky property taxes. The adjustment for the 2025-2026 assessment years is $49,100.

Under Kentucky MSRRA a nonresident Service member's Spouse may be exempt from paying Kentucky taxes on wages earned while stationed in Kentucky.

Service members serving in the U.S. Armed Forces who are deployed to an area designated as a combat zone are not required to file an income tax return and pay the taxes until 12 months after they return from deployment. IRS Combat and Hazardous Duty Areas for Tax Purposes

Kentucky does not tax Social Security benefits.

Kentucky offers a tuition waiver to the Spouse and Children of certain Veterans. Students can receive a waiver of tuition at any two-year, four-year or vocational technical school that are operated and funded by the Kentucky Department of Education.

Service members serving in the Kentucky National Guard can receive a tuition award that will pay in-state tuition for full or part-time study at Kentucky public and private educational institutions.

Kentucky school districts will issue high school diplomas to Veterans who left high school before graduating to serve in the U.S. Armed Forces during World War II (WWII), the Korean Conflict, or the Vietnam War.

The beneficiaries of a Kentucky resident service member serving in a reserve component of the U.S. Armed Forces who dies in the line of duty, while serving on federal active duty are eligible for a lump-sum death benefit of $80,000.

Kentucky National Guard Service members are not required to pay tolls going to or returning from their place of duty. Service members must be in uniform or have a written order signed by an officer in the Kentucky National Guard.

Kentucky resident disabled Veterans who have a 50% or more service-connected disability rating from the VA are eligible for a Disabled Sportsman's License.

Kentucky resident Service members who are in Kentucky on leave for three or more days are not required to have a hunting or fishing license. Service members must have their military ID and leave paperwork with them when hunting or fishing.

Kentucky resident former POWs are eligible for free camping at all Kentucky State Parks. Veterans must show their VA POW ID card at check in.

Employees who are Service members serving in the National Guard must be granted a leave of absence by their employer to attend required training or to serve on active duty.

Kentucky state employees who are the Spouse of a Service member serving in the U.S. Armed Forces can take one paid day off when the Service member deploys and one paid day off when the Service member returns from deployment. The Service member can be in an active or reserve component of the U.S.

Former Service members and reserve component Service members who are state or local government employees and participate in a Kentucky retirement pension program can purchase service credit for their time they served in the U.S. Armed Forces.

Kentucky offers Veterans' Preference by granting interview preference to Veterans and their eligible Family members who are applying for state and local government competitive classified positions.

Kentucky public employees who leave their position to voluntarily or involuntarily serve in the U.S. Armed Forces and receives an honorable discharge must be rehired to their former position, or a position of equal seniority, status, pay and any other rights or benefits.

Ten points are added to the passing examination score or rating of Spouses, Surviving Spouses, or mothers of Veterans. Both a mother and a Spouse (including Surviving Spouse) may be entitled to preference based on the same Veteran's service if they both meet the requirements.

Health and pension plan coverage for Service members is provided for by USERRA. Individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102% of the full premium.

Kentucky Career Centers have staff who are specifically trained to assist Veterans and Service members who are leaving the U.S. Armed Forces find suitable and sustainable civilian employment.​

The Kentucky Hilton Honors Military Program helps make the career transition from service in the U.S. Armed Forces to civilian employment easier for current and former service members. The Hilton Honors Military Program provides hotel accommodation for required employment related travel.

The VA provides valuable life insurance benefits to Veterans, active and reserve component Service members and their Families to provide financial security given the extraordinary risks involved in military Service. The VA provides the following life insurance benefit programs:

The Kentucky Department of Veterans Affairs has a Homeless Veterans Grant Program that provides assistance to honorably discharged Veterans who are homeless, or at risk of becoming homeless by connecting them to resources across the state. Resources include but are not limited to:

The VA National Cemetery Administration maintains eight national cemeteries in Kentucky. Please see the local location listing for the nearest cemetery.

Kentucky offers a Veteran designation on Kentucky driver's licenses and ID cards to honorably discharged Veterans. Veterans must apply at the nearest Kentucky Driver Licensing Regional Office. Veterans are required to provide a copy of one of the following documents as proof of eligibility:

Kentucky offers 41 license plate designs for motor vehicles and motorcycles to honor the service and sacrifice of eligible service members, Veterans, retired service members and their family members.

Medal of Honor recipients are eligible for the Kentucky Medal of Honor license plate. There are no purchase or renewal fees for this license plate. Applicants must provide a copy of their DD214 as proof they were awarded the Medal of Honor.

Veterans and service members who are Purple Heart recipients are eligible for the Kentucky Purple Heart license plate. Applicants must provide a copy of their DD214 as proof they were awarded the Purple Heart.

The Kentucky Disabled Veteran (Fee) license plate is available to honorably discharged Veterans who have a service-connected disability rating from the VA between 50% and 99%. Veterans must show proof of disability percentage and that they received an honorable discharge.

The Kentucky Disabled Veteran (No Fee) license plate is available to honorably discharged Veterans who have a service-connected disability rating from the VA of 100% or received VA funds to purchase or modify a vehicle to accommodate their disability.

The Kentucky Army Veteran license plate is available to honorably discharged Veterans who served in an active or reserve component of the U.S. Army and currently serving Soldiers. Soldiers must show their military ID card when applying.

Kentucky resident Service members and their dependents stationed outside Kentucky, whose driver's license has expired, can renew it within 90 days of returning to Kentucky without having to take a written test or road test

The mission of the Kentucky Women Veterans Program is to ensure that Kentucky's women Veterans have equal access to federal and state Veterans' services and benefits.

Kentucky National Guard Service members serving on state active duty may not be arrested when going to, while at, or returning from their place of duty except for a felony.

Certified copies of public records maintained by Kentucky officials that are required by the VA to be used to determine eligibility for benefits must be provided free of charge.

The Kentucky Department of Veterans Affairs will issue a medal to honor Kentuckians killed while serving in the U.S. Armed Forces.

The Homegrown by Heroes marketing initiative offers farmers and agricultural producers located in Kentucky, who are currently serving Service members or Veterans of the U.S. Armed Forces, the opportunity to use the Homegrown by Heroes logo on their agribusiness signage and agriculture products.

The VA has numerous resources and locations throughout the state available to assist Veterans and family members. To find a VA location in Kentucky enter Kentucky in the location field and choose the facility type you are searching for from the drop down menu at the "Learn more…" link below.